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Case study
Publication date: 13 February 2024

Edward D. Hess

The Home Depot case is a great story. It's about entrepreneurship, growth, CEO leadership, and the dramatic impact, good and bad, a CEO can have on a company's growth culture…

Abstract

The Home Depot case is a great story. It's about entrepreneurship, growth, CEO leadership, and the dramatic impact, good and bad, a CEO can have on a company's growth culture, strategy, and performance. Home Depot had faced market growth challenges for the last seven years as it tried in numerous ways to reignite its growth engine. The case explores the growth strategies of CEOs Bernie Marcus, Arthur Blank, and Blank's successor Bob Nardelli, a former GE executive. After examining Home Depot's growth history, the case challenges students to devise a growth strategy for the company under a new CEO.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Case study
Publication date: 20 January 2017

Michael J. Schill and Robert F. Bruner

This case follows the performance review and financial-statement-forecasting decisions of a Value Line analyst for the retail building-supply industry in October 2002. The case…

Abstract

This case follows the performance review and financial-statement-forecasting decisions of a Value Line analyst for the retail building-supply industry in October 2002. The case contrasts the strong operating performance of Home Depot with the strong stock-market performance of Lowe's. Students examine a financial ratio analysis for Home Depot that acts as a template to generate a comparable ratio analysis for Lowe's. The student ratio analysis is designed to build intuition with respect to interpreting individual ratios as well as ratio interrelationships (e.g., the DuPont framework). The historical-performance comparison suggests that investors are skeptical of the ability of Home Depot to maintain its performance trajectory, yet they project sustained improvements for Lowe's. Students are invited to scrutinize the analyst's five-year income-statement and asset-side balance sheet forecast for Home Depot. The case expressly focuses on the asset side of the balance sheet as a preview for other cases using free-cash-flow forecasting. The Home Depot forecast exercise exposes students to the mechanics of financial-statement modeling and sensitivity analysis, which they can use in building their own forecast for Lowe's. Finally, the strong-growth assumptions for Home Depot relative to the modest-growth forecast for the industry suggest that the company can be expected to capture massive and perhaps unreasonable market share in the near term. The exercise provides a striking example of the importance of comparing bottom-up business forecasting with top-down industry forecasts.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Keywords

Case study
Publication date: 20 January 2017

Richard E. Wilson

Andreas Stihl AG is the world's leading manufacturer of chain saws and other outdoor handheld power equipment. Based on marketing challenges in its high-volume retail channel—mass…

Abstract

Andreas Stihl AG is the world's leading manufacturer of chain saws and other outdoor handheld power equipment. Based on marketing challenges in its high-volume retail channel—mass merchants such as The Home Depot and Lowe's—Stihl's U.S. unit has narrowed its distribution system to a single channel: independent retail dealers specializing in yard maintenance equipment. This risky and highly publicized decision has proved extremely successful, raising profits, attracting more dealers into exclusive relationships with Stihl, and strengthening the brand's top-quality positioning. But Stihl management are concerned that this channel system may not fit tomorrow's demographics, dominated by homeowners from the so-called Generation X and Generation Y. The case outlines Stihl's business and channel systems and customer needs, then poses a series of questions that management believes must be answered to determine whether to maintain or move away from reliance on its specialty retailers and how to adapt its system.

To understand issues related to retail channel strategy development in fast-changing consumer markets, as well as the challenges of adapting legacy routes-to-market systems to changing consumer service output demands.

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

Keywords

Article
Publication date: 26 February 2021

Hartmut Hoehle, Jia Wei, Sebastian Schuetz and Viswanath Venkatesh

In the aftermath of data breaches, many firms offer compensation to affected customers to recover from damaged customer sentiments. To understand the effectiveness of such…

Abstract

Purpose

In the aftermath of data breaches, many firms offer compensation to affected customers to recover from damaged customer sentiments. To understand the effectiveness of such compensation offerings, Goode et al. (2017) examined the effects of compensation offered by Sony following the PlayStation Network breach in 2011. Although Goode et al. (2017) present key insights on data breach compensation, it is unclear whether their findings generalize beyond the context of subscription-based gaming platforms whose customers are young and experience substantial switching costs. To address this issue, we conducted a methodological replication in a retail context with low switching costs.

Design/methodology/approach

In our replication, we examine the effects of compensation offered by Home Depot in the aftermath of its data breach in 2014. Home Depot is the largest home improvement retailer in the US and presents a substantially different context. Data were collected from 901 participants using surveys.

Findings

Our results were consistent with the original study. We found that in retail breaches, effective compensation needs to meet customers' expectations because overcompensation or undercompensation leads to negative outcomes, such as decreased repurchase intention.

Originality/value

Our study provides insights into the effectiveness of compensation in the retail context and confirms the findings of Goode et al. (2017).

Details

Internet Research, vol. 31 no. 3
Type: Research Article
ISSN: 1066-2243

Keywords

Book part
Publication date: 19 May 2009

Cheryl L. Wade

Why do so many African Americans get stuck near the bottom or at the middle of the corporate ladder? Why do so many continue to complain about discriminatory pay and promotion…

Abstract

Why do so many African Americans get stuck near the bottom or at the middle of the corporate ladder? Why do so many continue to complain about discriminatory pay and promotion decisions many decades after the enactment of anti-discrimination laws? Law and economics commentators who have written about the issue of employment discrimination have failed to address the complexity of the problem of implicit bias and the effects of the frequently inaccurate heuristics used by some white workers when making judgments about their black colleagues. Economic theory without context is useless. But with context, law and economic analysis can help us understand and address specific problems like workplace discrimination that persist within corporate cultures because of an overestimation of the cost of anti-discrimination efforts and an underestimation of the gravity and likelihood of workplace discrimination.

In this chapter, I explore the economic and socioeconomic reality of African American low and mid-level corporate managers in order to capture a more complete picture of the costs of discrimination in the corporate workplace. I also explore the heuristic assumptions that are made about African American professionals and the effects those assumptions have on the black community. Finally, to understand the gravity of the harm to individuals, their families and the communities to which they belong, narratives about the economic and psychological harm caused by discrimination are essential. I offer the narratives of six middle managers and low-level professionals who faced discrimination in the corporate workplace to provide an important context about discrimination's real costs.

Details

Law & Economics: Toward Social Justice
Type: Book
ISBN: 978-1-84855-335-4

Article
Publication date: 4 December 2017

Ying Yu, Xin Wang, Ray Y. Zhong and G.Q. Huang

The purpose of this paper is to present the state-of-the-art E-commerce logistics in supply chain management by investigating worldwide implementations and corresponding models…

14273

Abstract

Purpose

The purpose of this paper is to present the state-of-the-art E-commerce logistics in supply chain management by investigating worldwide implementations and corresponding models together with supporting techniques via furniture industry.

Design/methodology/approach

Typical E-commerce logistics companies from North America, Europe, and Asia Pacific are comprehensively investigated so as to get the lessons and insights from these practices.

Findings

Future technologies like Internet of Things, Big Data Analytics, and Cloud Computing would be possibly adopted to enhance the E-commerce logistics in terms of system level, operational level, and decision-making level that may be real time and intelligent in the next decade.

Research limitations/implications

This paper takes the furniture industry for example to illustrate the E-commerce logistics and supply chain management (LSCM). Other industries like electronic appliance industry are not considered.

Practical implications

Opportunities and future perspectives are summarized from practical implementations so that interested parties like E-commerce and logistics companies are able to get some guidance when they are contemplating the business.

Social implications

E-commerce is booming with the development of new business models and will be continuously boosted in the near future. With large number of enterprises carrying out E-commerce, logistics has been largely influenced.

Originality/value

Insights and lessons from this paper are significant for academia and practitioners for considering E-commerce LSCM.

Details

Industrial Management & Data Systems, vol. 117 no. 10
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 1 November 2002

Stephen J. Arnold

The world’s best retailers – Ahold, Benetton, Carrefour, Home Depot, IKEA and Wal‐Mart – reflect several common characteristics: inspirational leadership, a motivational…

19346

Abstract

The world’s best retailers – Ahold, Benetton, Carrefour, Home Depot, IKEA and Wal‐Mart – reflect several common characteristics: inspirational leadership, a motivational organisational culture, innovativeness, adaptability and consumer and community relevant behaviours.

Details

International Journal of Retail & Distribution Management, vol. 30 no. 11
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 1 September 2004

Seyed‐Mahmoud Aghazadeh

Today, human resource management is being renewed in organizations and is gradually affirming its strategic role. The need for highly qualified managers will increase as more…

25281

Abstract

Today, human resource management is being renewed in organizations and is gradually affirming its strategic role. The need for highly qualified managers will increase as more organizations globalize their operations. The research presented in this paper highlights the need for management who are sensitive to the concerns of multicultural employees. The effects of cultural diversity on organizational behavior are complex and powerful. Within this perspective, the definition of diversity in the USA and the goals in achieving a more diverse workplace will be discussed. This paper will also examine the different facets involved in managing and developing a diverse human resource base. Organizations take into account their human resource base before hiring employees. One factor they look at is the possible advantages and disadvantages of a multicultural and diverse organization. This paper will examine ways by which managers and employees can learn about diversity, understand it, and respect it on a day‐to‐day basis when dealing with people from other diverse backgrounds.

Details

International Journal of Productivity and Performance Management, vol. 53 no. 6
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 1 November 1998

Robert F. Lusch and Stephen L. Vargo

Globally a new wave of retailers are threatening the viability of many wholesalers, especially smaller more vulnerable wholesale distributors, as these new wave retailers…

1979

Abstract

Globally a new wave of retailers are threatening the viability of many wholesalers, especially smaller more vulnerable wholesale distributors, as these new wave retailers aggressively compete for the business customer. To better understand this new form of competition, a theoretical model is developed from the organizational buyer behavior literature to explain the relative patronage preferences of business customers for wholesale‐distributors as a supply source versus two types of multiplex retailers ‐ warehouse home centers and office supply superstores. The model, previously untested in the business‐to‐business literature, postulates that business buyers select supply sources based on a “total value of purchasing” criterion. The total value is a function of price and the perceived costs associated with credit services, product‐acquisition services, and risk‐reduction services. The model is empirically tested in both an office supply superstore and warehouse home center setting with survey research conducted in six cities in the USA. Substantial empirical support, with the exception of the credit component, is obtained for the model.

Details

International Journal of Physical Distribution & Logistics Management, vol. 28 no. 8
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 2 February 2010

Julia B. Edwards, Alan C. McKinnon and Sharon L. Cullinane

The purpose of this paper is to focus on the carbon intensity of “last mile” deliveries (i.e. deliveries of goods from local depots to the home) and personal shopping trips.

10183

Abstract

Purpose

The purpose of this paper is to focus on the carbon intensity of “last mile” deliveries (i.e. deliveries of goods from local depots to the home) and personal shopping trips.

Design/methodology/approach

Several last mile scenarios are constructed for the purchase of small, non‐food items, such as books, CDs, clothing, cameras and household items. Official government data, operational data from a large logistics service provider, face‐to‐face and telephone interviews with company managers and realistic assumptions derived from the literature form the basis of the calculations. Allowance has been made for home delivery failures, “browsing” trips to the shops and the return of unwanted goods.

Findings

Overall, the research suggests that, while neither home delivery nor conventional shopping has an absolute CO2 advantage, on average, the home delivery operation is likely to generate less CO2 than the typical shopping trip. Nevertheless, CO2 emissions per item for intensive/infrequent shopping trips by bus could match online shopping/home delivery.

Research limitations/implications

The number of items purchased per shopping trip, the choice of travel mode and the willingness to combine shopping with other activities and to group purchases into as few shopping trips or online transactions as possible are shown to be critical factors. Online retailers and home delivery companies could also apply measures (e.g. maximising drop densities and increasing the use of electric vehicles) to enhance the CO2 efficiency of their logistical operations and gain a clearer environmental advantage.

Practical implications

Both consumers and suppliers need to be made more aware of the environmental implications of their respective purchasing behaviour and distribution methods so that potential CO2 savings can be made.

Originality/value

The paper offers insights into the carbon footprints of conventional and online retailing from a “last mile” perspective.

Details

International Journal of Physical Distribution & Logistics Management, vol. 40 no. 1/2
Type: Research Article
ISSN: 0960-0035

Keywords

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